Treasury needs some stability
In life, change is inevitable for varying reasons. Change is a law of life, so they say. Basically, change is initiated to improve things or make progress.
However, there are also some situations where change for the sake of change turns to be counterproductive in one way or another. This is where change needs to be effectively managed to avoid sending wrong signals.
Following the change of political tenants at Capital Hill through the May 20 Tripartite Elections, change is in the air in the public sector, especially for those holding top positions in parastatals and the civil service itself.
Today, I will dwell on the change at the Ministry of Finance, Economic Planning and Development where Dr Ronald Mangani has been appointed principal secretary (PS) or secretary to the Treasury (ST) as the office is popularly known. He has replaced Newby Kumwembe who had been ST since October last year when he succeeded Randson Mwadiwa.
Congratulations Dr Mangani on your appointment. To bwana Kumwembe, well, I wish you all the best in your next assignments.
I have known Dr Mangani for some time. He has the credentials. He holds a PhD in Economics from the University of Cape Town, an MSc in Economics from the University of York and a Bachelor of Social Science (Economics) from the University of Malawi’s Chancellor College.
Mangani, who has been an economics lecturer at Chancellor College since 1994, has also been on the board of the Reserve Bank of Malawi for some time. But he has spent most of his professional life in the intellectual corridors, not public finance management experience.
As a matter of fact, Mangani is not the first person to fill the shoes of ST from outside the civil service. In 2010, former president the late Bingu wa Mutharika also picked current Minister of Industry and Trade Joseph Mwanamvekha from the private sector to be ST. Mwanamvekha was at the time working as chief executive officer for the State-owned Malawi Savings Bank (MSB).
Without necessarily personalising the issue, I thought in the current situation when there is turmoil in the management of public finances, there is need for stability, especially in the top leadership of Treasury. Politicians come and go, but the system remains and is managed by technocrats such as the ST.
However, from the look of things, the situation on the ground is different. It seems STs are being changed like clothes as, for the record, the country has had three in less than a year!
Surely, this high turnover for STs is cause for worry. ST is a very critical position in public finance management hence the need for stability. The ST is the technical head of Treasury who runs the show, meets development partners as well as the private sector on various policies. This office is different from that of Cabinet ministers who can be reshuffled from one portifolio to another because they are not technocrats.
Previously, we have had STs serving long terms. Here I have in mind the late Respicious Dzanjalimodzi as well as Mwadiwa.
Changing office bearers frequently tends to send wrong signals to the market and creates loopholes for abuse.
I am not saying we should not change but when such changes are made to such critical offices in the economy it is important to prepare the market.
But in the face of statements from the President that some public servants are being moved or transferred to pave the way for Cashgate investigations, surely such confidence in the machinery is eroded. This is where the wrong signals are being sent across.
